Barclays initiated coverage of Beyond Meat (NASDAQ:BYND) on Thursday and said the company was "well-positioned" with the “potential” to capture a large share of the alternative meat market.
The firm gave the alternative meat company an “overweight” rating, with a target price of $185 a share.
Said one Barclays analyst, "We estimate that BYND could reach a 4.5% market share of the global alternative meat industry, which itself could represent 10% of the global meat industry within a decade"
Since the company went public three months ago, investors have exceptionally enjoyed an 840% gain from the IPO price of $25 per share.
The fall from grace of Beyond Meat was not inevitable, it was certainly expected, and for investors, the decline is not over yet.
There is much hype regarding plant-based meat this year, and Beyond Meat and Impossible Burger have been beneficiaries of the hype.
Although plant-based meat alternatives are increasingly becoming popular in retail chains, Beyond Meat managed to grow rapidly because of partnerships with fast food joints and restaurants.
On Wednesday, shares of the company dropped nearly 6% after Restaurant Brands International’s (NYSE:QSR) Tim Hortons removed Beyond Meat from all but two provinces in Canada. The restaurant hospitality company said the Beyond Meat products were only intended to be for a limited time.
BYND shares opened Thursday up $1.11 to $155.10
